E – COMMERCE ASSIGNMENT – 4

Q1. a) How does spoofing threaten a website’s operation?

Answer: Spoofing is another type of cyber-attack in which attackers simulate a genuine source to
trick the users or the systems. It may be of various types such as email spoofing, site spoofing, IP
spoofing, and DNS spoofing. It is more harmful to the integrity, reliability, and functionality of
websites, particularly online shopping websites.

 Types of Spoofing and Threats:

1. Email Spoofing:

Attackers forge emails that appear to be from genuine organizations in hopes of fooling the user
into divulging personal details or installing virus-infected links.

Threat: Leads to phishing attacks and data breaches.

2. Website Spoofing (Phishing Websites):

Spoofed websites impersonating genuine e-commerce websites.

Threat: Surfs away user passwords, financial information, or spreads malware.

3. IP Spoofing:

Spoofed IP addresses utilized for unauthorized logon or for steering DDoS attacks.

Threat: Crashes websites or stops services.

4. DNS Spoofing:

Leads genuine website visitors to impersonator sites.

Risk: End-users are unwittingly dealing with malicious sites.

 Impact on Website Functionality:

1. Loss of Customer Trust: When spoofed, customers lose trust in the original company.
2. Revenue Loss: Businesses can be forced to pay off victimized end-users and incur money
on damage control.
 3. Legal Impacts: Online businesses are liable for negligence in gathering user data.
4. Reputation Degradation: Negative public relations due to security breaches affect long-
term business.
5. System Unavailability: In the case of IP spoofing and DDoS, website availability is
affected, leading to loss of revenues.
 Real-Life Example: Spoofers replicated a major Indian bank's login page in 2020 and
emailed customers with phishing messages. Thousands of users entered credentials to the
fake page, which led to fund transfers without their awareness and huge losses.
 Prevention Measures:
1. Employ SSL certificates (HTTPS) for site authentication.
2. Utilize 2-factor authentication for secure login.
3. Employ email validation tools (e.g., SPF, DKIM, DMARC).
4. Notify users of phishing and spoofing attacks.
5. User education and awareness about phishing links.
6. Regular security audits and firewalls.
7. Two-factor authentication (2FA) for sensitive actions.

b) Differentiate between E-Commerce and Mobile Commerce?

Parameter E-Commerce Mobile Commerce (M-Commerce)

Definition Buying and selling of goods/services Buying and selling using mobile
over the internet. phones or tablets.
Device Used Desktops, laptops, etc. Smartphones, tablets, wearable
devices.
Access Websites accessed via browsers. Mobile apps or mobile-optimized
Medium websites.
Portability Less portable (depends on larger Highly portable (users can shop on-
devices). the-go).
User Better suited for detailed browsing and Simplified and faster user interface
Experience larger screen usage. for quick decisions.
Connectivity Primarily through broadband or Wi-Fi. Can operate on mobile data networks
(3G, 4G, 5G).
 Payment Online banking, credit/debit cards. Mobile wallets, UPI, QR codes,
Options contactless payments.
Examples Shopping on Amazon via desktop Ordering food through Swiggy
browser. mobile app.

Q2. Discuss ethical issues related to e-commerce. Explain cryptography & digital signature?

Answer: Ethical Issues in E-Commerce:

E-Commerce has revolutionized the way people buy and sell products and services. However, with
its rapid growth, various ethical concerns have emerged that affect customers, businesses, and
society at large. Some of the key ethical issues include:

1. Privacy Concerns: E-commerce platforms collect a vast amount of personal data from users.
This includes browsing behavior, search history, purchase records, personal identification
information (PII), and payment details. Ethical concerns arise when this data is:

 Shared with third parties without user consent.

 Collected without clear disclosure.
 Stored without adequate safeguards.

For example: targeted advertisements often use this data to influence consumer behavior.
Ethically, companies must ensure transparent data policies, informed consent, and secure data
handling practices.

2. Security and Trust: Security breaches in e-commerce can lead to identity theft, financial fraud,
and loss of trust. Weak cybersecurity measures make customer data vulnerable to hackers.
Businesses have a moral responsibility to:

 Implement strong encryption and firewall protection.

 Regularly update their systems to address vulnerabilities.
 Inform customers in case of data breaches.
3. Intellectual Property Violations: Many e-commerce platforms face challenges related to
counterfeit goods and copyright infringement. Sellers may:

 Upload pirated software, music, or videos.

 Sell fake branded products using stolen logos or designs.

4. Unethical Marketing Practices: Some e-commerce websites use manipulative tactics to

mislead customers:

 Fake scarcity alerts like “Only 1 left in stock!”

 Artificially inflated original prices to show false discounts.
 Hidden charges revealed only at checkout.

5. Fake Reviews and Ratings: Online reviews significantly influence purchase decisions. Some
companies manipulate ratings by:

 Posting fake positive reviews.

 Hiding or deleting negative reviews.
 Paying influencers to promote products dishonestly.

6. Accessibility and the Digital Divide: E-commerce is not equally accessible to all sections of
society. Factors like lack of internet access, digital literacy, and affordability contribute to the
digital divide. Ethically, platforms should strive for inclusivity by:

 Making websites accessible to the visually impaired.

 Offering services in multiple regional languages.
 Supporting mobile-friendly and low-data options.

Real Example: Facebook-Cambridge Analytica Scandal (2018). In this incident, data of over 87
million Facebook users was harvested without consent and used for political profiling and targeted
advertising during elections. This case raised major ethical concerns regarding data privacy,
informed consent, and corporate accountability in the digital space.

 Cryptography in E-Commerce:
Cryptography is the science of securing information by converting it into an unreadable format,
known as cipher text, using mathematical algorithms. Only authorized users can decrypt it back
into readable form.

Purpose in E-Commerce:

Cryptography plays a vital role in securing online transactions by ensuring:

 Confidentiality – Only the intended recipient can read the data.

 Integrity – The data remains unchanged during transmission.
 Authentication – Verifying the sender’s identity.

Example: When a user enters their credit card details on an e-commerce site like Amazon, the
information is encrypted using SSL (Secure Sockets Layer) encryption. This ensures that the data
cannot be read by hackers during transmission.

 Digital Signature:

A digital signature is a cryptographic technique that verifies the authenticity and integrity of a
digital message or document. It functions like an electronic fingerprint and is legally valid in many
countries.

Purposes in E-Commerce:

 Authentication: Verifies the identity of the sender or signer and ensuring that the message
or document actually came from the claimed source.
 Data Integrity: Confirms that the content of the document or message has not been
modified after it was signed. Even a small change in the content would make the digital
signature invalid.
 Non-Repudiation: Prevents the sender from denying their involvement in the transaction.
Legally binds the sender to the message, similar to a handwritten signature.
 Security in Transactions: Adds an extra layer of trust in online dealings to protect
sensitive documents like invoices, contracts, and financial records.
  Legal Compliance: In many countries, digital signatures are legally recognized and
required for online contracts and government filings.

Example: In India, the Goods and Services Tax Network (GSTN) uses digital signatures to
authenticate the filing of GST returns. This ensures that the data submitted is genuine and verified
by the authorized person.

Q3. Explain Emerging Trends in E-Commerce?

Answer: E-commerce is rapidly evolving, influenced by technological advancements, consumer

expectations, and global digitalization. The following trends are shaping the future of e-commerce:

1. Artificial Intelligence (AI) & Machine Learning:

Artificial Intelligence and Machine Learning are transforming how businesses understand and
interact with customers.

 AI-driven product recommendations: E-commerce platforms use browsing history,

previous purchases, and customer behavior to recommend relevant products.
 Dynamic pricing: Prices adjust in real time based on demand, inventory levels, and
competitor pricing.
 Customer segmentation: AI helps in dividing customers into groups based on behavior
for targeted marketing.
 AI Chatbots: Provide 24/7 customer support, answer FAQs, and guide users through the
purchase process.

Example:
Netflix and Amazon suggest shows or products tailored to individual preferences using AI
algorithms.

2. Voice Commerce:

With the rise of smart assistants like Amazon Alexa, Google Assistant, and Apple Siri, voice-based
shopping is gaining popularity.
  Users can make purchases using simple voice commands.
 Enhances convenience and accessibility for users, especially in smart homes.

Example: A customer can say, “Alexa, reorder my last toothpaste” and Alexa will place the order
automatically.

3. Augmented Reality (AR):

AR bridges the gap between physical and online shopping by allowing users to virtually "try before
they buy".

 Helps visualize how products will look in real life, reducing the chances of returns.
 Popular in sectors like furniture, fashion, and cosmetics.

Example: The IKEA Place app allows users to place virtual furniture in their rooms through a
smartphone camera to see how it fits.

4. Mobile Wallets and UPI:

The adoption of digital payment methods like Paytm, PhonePe, Google Pay, and UPI (Unified
Payments Interface) has revolutionized e-commerce in India.

 Enables fast, secure, and contactless transactions.

 Encourages cashless shopping, especially after the pandemic.

Benefits: Faster checkout process, improved customer satisfaction, and reduced cart
abandonment.

5. Social Commerce:

Social commerce refers to buying products directly through social media platforms.

 Platforms like Instagram Shop, Facebook Marketplace, and YouTube Shopping allow
users to discover and purchase products without leaving the app.
 Influencer marketing plays a crucial role in promoting products and building trust.
Example: Instagram allows brands to tag products in their posts and stories, enabling users to
purchase with a few clicks.

6. Blockchain Technology:

Blockchain provides security, transparency, and decentralization in digital transactions.

 Smart contracts enable automated and trustworthy agreements without intermediaries.

 Improves supply chain transparency, allowing customers to trace the origin of products.

Example: Blockchain can track food items from farm to plate, ensuring authenticity and ethical
sourcing.

7. Drone Delivery & Logistics Automation:

To meet growing expectations for fast and contactless deliveries, companies are exploring drones
and automated robots.

 Drones can deliver packages in remote or urban areas within minutes.

 Robots and AI systems are being used in warehouses to manage inventory and speed up
order fulfillment.

Example: Amazon is testing Prime Air, a drone-based delivery system to deliver items in under
30 minutes.

8. Sustainable and Ethical E-Commerce:

With rising environmental awareness, consumers prefer brands that follow eco-friendly and ethical
practices. Demand is increasing for sustainable packaging, carbon-neutral shipping, and ethically
sourced products for the Companies to highlight their environmental efforts to attract socially
conscious consumers.

Example: Brands like Puma and Tata Cliq promote sustainability through recyclable packaging
and green logistics.
9. Hyper-Personalization:

Hyper-personalization involves using big data, analytics, and AI to deliver deeply customized
shopping experiences. Personalized landing pages, emails, product recommendations, and
dynamic ads based on individual preferences to enhances customer satisfaction and increases
conversion rates.

Example: Spotify provides personalized playlists and Amazon shows a personalized homepage
with suggested products.

10. Subscription-Based Models:

Subscription models offer customers convenience and cost-savings by delivering

products/services at regular intervals. Ideal for products that need regular replenishment like
groceries, pet food, or personal care items to helps businesses maintain consistent revenue and
customer loyalty.

Example: Amazon Prime Pantry allows customers to subscribe to household essentials. Also,
Netflix and Spotify offer media streaming services on a monthly subscription basis.